As digital landscapes evolve, cybersecurity remains a cornerstone for financial institutions globally. 

Itumeleng Makgati, Divisional Executive: Enterprise, Group Technology, at Nedbank, provides a overview of the cyber security challenges banks face amid digital advancements. 

With October marking the 21st Cyber Security Awareness Month, themed 'Secure Our World,' the timing is apt to delve into these critical issues.

Makgati details the primary cyber security threats facing the banking sector:

1. Phishing attacks: "Phishing remains a predominant threat, with criminals employing more sophisticated methods to deceive both employees and customers," Makgati points out. These tactics often include fraudulent emails and websites designed to steal personal information.
2. Third-Party Risks: Banks often rely on external vendors, which introduces potential vulnerabilities if these third parties are not properly secured.
3. AI-Enabled Threats: The rise of AI has equipped cybercriminals with more potent tools, enabling them to launch precise and effective attacks.
4. Data Breaches: Financial institutions, rich in sensitive data, are prime targets for breaches, which can devastate both customer trust and financial stability.

To counter these risks, Makgati recommends several strategic measures:

• Multi-Layer Security: Employing various defences like firewalls, intrusion detection systems and continuous software updates is vital for protection against diverse threats.
• Risk-Based Approach: "We prioritise cybersecurity measures based on the potential impact and likelihood of threats," explains Makgati. This approach helps in allocating resources where they are most needed.
• Continuous Monitoring: Ongoing assessments and real-time monitoring are crucial to detect and quickly respond to new threats.

Makgati underscores the severe growth in banking fraud, noting, "Fraud is a critical concern, with estimates suggesting up to five percent of corporate revenue is lost annually to fraud, totalling about $4.7 trillion globally."

Emerging technologies that play a vital role in fraud prevention include:

• Artificial Intelligence (AI) and Machine Learning (ML): These technologies analyse extensive data sets to detect fraud patterns and anomalies.
• Blockchain: This technology ensures transaction records are transparent and immutable.
• Biometric Authentication: This adds a layer of security by verifying identities through unique biological traits.
• Behavioural Analytics: This technique is used to monitor user behaviour for signs of unusual activity that might indicate fraud.

The shift towards remote work necessitates enhanced cyber security measures. "The move to remote work environments, though often preferred by employees, removes the physical cybersecurity defences found in office settings," states Makgati.

Educating employees on secure practices is essential to mitigate potential data breaches and maintain productivity.

The threat of software supply chain attacks, where malicious code is spread through compromised software updates, is a growing concern. "Being proactive in scanning for vulnerabilities and educating customers about these risks is crucial," Makgati advises.

By adopting comprehensive, forward-thinking security measures, financial institutions can safeguard their assets and maintain the trust of their customers in an increasingly digital world.